Question: Assume that perfect markets do not hold. A project will return 15% with certainty one year from now.The initial investment is $5,000.The appropriate marginal tax

Assume that perfect markets do not hold. A project will return 15% with certainty one year from now.The initial investment is $5,000.The appropriate marginal tax rate is 42%.The equivalent tax-exempt bond yields 4% and the equivalent taxable bond yields 8%.What is the NPV of this project?

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